UNEMPLOYMENT TAX

Hawke's Bay Tribune, Volume XXIV, Issue 246, 29 September 1934, Page 4

UNEMPLOYMENT TAX

Reduction From Monday POSITION EXPLAINED

The promised reduction in the rate of emergency unemployment charge from 1/- to lOd in the 11 has now been gazetted, and becomes effective on Monday next.

Employers are reminded that thq reduction applies only to salary or wages earned on or after October 1, and does not affect amounts earned prior to that date, notwithstanding that the payment may be made after September 30. As an illustration, salary or wages paid tor services performed for tie fortnight ended on October 6 must be apportioned and the tax applied at the rate of 1/- in the £1 to one-half of the remuneration and at the rate of lOd. in tho £1 to the other half. This reduction also applies to those instalments of the emergency unemployment charge on income other than salary or wages which fall due on or after November 1. The November, 1934. and February. 1935, instalments will consequently be accepted at tho reduced rate. Taxpayers who paid the full year's tax jn advance will receive, before May 1, 1935, a credit note showing the amount of tax overpaid, the excess amount being credited against the tax duo on income derived during the year ended March 31, 1935. It has already been explained that the Government's proposals for the granting of some relief to certain classes of taxpayers would require further legislative authority, and, until the necessary amending legislation is passed by Parliament, there are no emptions other than those at present provided for under existing enactments.